lendingclub is also subject to ECOA, which legally prohibits it from discriminating among certain borrower pools. The most common example is zip code, which could be a proxy for race.
also, hedge funds can value their portfolios in one of two ways:
- mark to market e.g. based on current interest rates
- held to maturity (not subject to mark to market) but starting off with a loss reserve and making write-ups or write-downs when there's evidence the loss reserve is too conservative or too aggressive. This smooths out the returns stream over time and mitigates the impact of returns coming down over time that retail investors see in their accounts as retail accounts only get mark-down when there's an actual credit event.
also, hedge funds can value their portfolios in one of two ways:
- mark to market e.g. based on current interest rates
- held to maturity (not subject to mark to market) but starting off with a loss reserve and making write-ups or write-downs when there's evidence the loss reserve is too conservative or too aggressive. This smooths out the returns stream over time and mitigates the impact of returns coming down over time that retail investors see in their accounts as retail accounts only get mark-down when there's an actual credit event.